MSFT and META both reported blockbuster earnings this week, fueling hopes of a potential Big Tech resurgence. At the same time, S&P 500 companies have seen the sharpest decline in earnings outlook since the Covid-19 pandemic in 2020 amid drastic decreases in CAPEX. Recent economic data indicates that the full effects of tariffs have yet to materialize, which has helped support equity markets over the past week.
The past few years have been a whirlwind for Nvidia (NVDA 2.33%) investors. The onset of the artificial intelligence (AI) revolution led to scorching demand for the graphics processing units (GPUs) that make AI possible.
Microsoft reported strong Q3 FY2025 results, driven by reaccelerated growth in its cloud and AI business, particularly Azure, sending the stock 7% higher. Despite global trade tensions, MSFT's cloud business remains resilient, with Q4 FY2025 guidance pointing to continued sequential growth acceleration. Its AI capex outlook remains strong, with guidance for higher spending in FY2026, although growth is expected to be slower on a YoY basis, easing concerns about overspending.
The Nasdaq has continued to rebound and drift higher after the market received favorable quarterly results and guidance from Meta Platforms (META) and Microsoft (MSFT).
Microsoft has hired a law firm that is fighting back against the Trump administration's legal industry crackdown, dropping another prominent firm that chose to settle with the White House.
Major U.S. equities indexes pushed higher on Thursday after strong quarterly earnings reports from software giant Microsoft (MSFT) and Facebook parent Meta Platforms (META) helped alleviate some concerns about the possible impact of tariffs on big technology companies.
Microsoft raised the recommended retailer pricing for its Xbox consoles and controllers worldwide, effective Thursday (May 1), and said it expects to raise the price of its new, first-party games starting during the holiday season.
Ted Mortonson, managing director at Baird, discusses Microsoft's better-than-expected third-quarter results. He joins Caroline Hyde and Ed Ludlow on "Bloomberg Technology.
The move comes a few weeks after PlayStation maker Sony raised the prices of its PlayStation 5 console in various markets.
The company also expects its momentum to continue in the fourth quarter – especially with its focus on artificial intelligence.
Microsoft Corp (NASDAQ:MSFT) has earned a price target boost from analysts at Wedbush following its earnings report, with analysts citing broad-based strength and powerful AI-driven momentum across the company's Cloud portfolio. “We are raising our price target from $475 to $515 following this robust Microsoft quarter while maintaining our ‘Outperform',” analysts wrote, calling the results “an Aaron Judge-like quarter featuring beats across the board.
Microsoft said it's charging more for the Xbox Series S and Xbox Series X consoles and some compatible controllers, citing "market conditions." The prices for new games will also be higher during the holiday season due to increasing development costs.